Otto Group Russia consolidates and expands logistic infrastructure

Total investment of EUR 50 million: Otto Group Russia doubles area of Tver logistics facility and expands ParcelShop network
 
By a further investment of EUR 50 million the Otto Group Russia intends to expand its market leadership in e-commerce. A large part of this amount will be used for expansion of logistics infrastructure. The capacity of the logistics centre in Tver will be doubled to allow strong future growth. In line with that about 700 new jobs will be created.
 
With this investment also the ParcelShop-Network will be extended, where customers can pick up their ordered goods. Hermes and DPD have established this network in 2010, based on a joint venture, and has been expanded steadily since then. Today the network includes more than 350 ParcelShops in 90 Russian cities. Their target is 1,000 stores in 150 cities by 2015.
 
In seven years, the Russian branch of the globally operating trade and services group has developed from a newcomer to the market leader in Russian distance retail. Under the umbrella of Otto Group Russia, the company has been active since 2006 in the Russian market. With about a dozen brands, the group generates here now approximately EUR 550 million in annual turnover. The most successful Bonprix brand achieves more than EUR 200 million in turnover. More strong brands are OTTO, Quelle, Witt, NaDom, Lascana, myToys.ru and Meggy Mall. In order to send the ordered goods as soon as possible to customers, Otto Group Russia operates a logistics centre in Tver.
 
According to market research outlook for Russian distance trade, which is composed of the catalogue business and e-commerce, is outstanding. While in Germany the share of distance sales is about 8 per cent of total retail, in Russia this figure is still below three per cent. According to forecasts, especially the online shopping in Russia will develop strongly. The e-commerce sales will more than double in the next five years from today’s EUR 8.2 billion. Also catalogue trade is growing parallel to the overall growth of the retail segment.
 
www.ottogroup.com/en/die-otto-group/konzernfirmen/otto-group-russia.php

Quelle: LogEastics

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